View full sizeAssemblywoman Alison McHose, R-24th, speaks about the Second Amendment during the "We the People" rally which was held outside the Warren County Courthouse in Belvidere.Express-Times Photo | STEPHEN FLOOD

A bill sponsored by two local New Jersey Assembly members aimed at preventing unemployment and disability insurance fraud was approved Monday.

Cosponsored by Republican Assembly members Alison Littell McHose and Parker Space, both of whom represent the 24th District covering parts of Warren County, the bill hopes to curb insurance fraud in cases of unemployment and temporary disability by requiring that death and incarceration records be transferred to the state Department of Labor.

McHose said that these types of benefits are solely for "law abiding
individuals," not criminals.

"Someone
sitting in a prison cell is there because he or she are paying the
consequences for breaking the law," McHose said in a statement. "It's unconscionable that inmates have
been receiving unemployment checks and other benefits. Based on recent
audits of the systems, it's clear that better oversight is needed."

Drawing attention to a 2009 to 2011 audit performed by the state Department of Labor and Workforce Development's unemployment insurance program, Space said it's clear that upgrades to the current system of operations are needed.

Under the law, the state Department of Labor will electronically receive Social Security and address information of a decedent from the state registrar following the completion of his or her official death record. The department will also receive that information from the state Department of Corrections when a person becomes incarcerated.

A cross-check of both death and incarceration records will also be required, thus aiming to further prevent the possibility of fraud.

"This measure will expedite that process and allow the department to
receive electronic notification of death and incarceration statistics in
a timely manner to ensure that individuals who are not eligible do not
receive unemployment or temporary disability benefits," Space said in a statement. "Audits are conducted for a reason but are
useless if no action is taken when problems are uncovered."

The bill passed with 78 votes. An identical Senate bill was released by a committee on June 13.

The Assembly also approved a second related bill from Space Monday placing
the penalty amount for those who collect fraudulent unemployment
benefits at 25 percent of whatever is received. Of the 25 percent, 15 percent will be contributed to the state's unemployment compensation fund and the remaining 10 percent will be placed into the unemployment auxiliary fund.

Accompanying Senate legislation for the second bill was passed on June 20.